What’s the most important type of software for your business? Your first thought may be whatever system you rely on most to produce or sell your company’s products or services. And that may well be true.
However, more than likely, your accounting software comes in a close second. After all, this technological tool tracks every financial transaction related to your business. It needs to be secure, up to date, and appropriate for your company’s size and needs.
To keep all those factors in line, you’ve got to handle accounting software upgrades with care. Let’s review some fundamental best practices.
Plan upgrades strategically
Among the most important aspects of managing an upgrade is knowing when to do it. You don’t want to unnecessarily disrupt operations and spend money, but you shouldn’t risk the downsides of outdated functionality by waiting too long.
There’s no one-size-fits-all answer. Your financial statements are a potentially helpful source of information. A general rule of thumb says that, when annual revenues hit certain benchmarks — perhaps $1 million, $5 million, $10 million and so forth — a business may want to consider an upgrade seriously. However, the right tipping point depends on various factors.
Look for an industry-specific solution
Some companies rush into upgrades without considering all their options. Others resist change entirely, sticking with the same accounting software for years. Either way, you could miss out on something important: a product designed for your industry.
For instance, construction companies can choose from many applications with built-in features tailored to how contract-based businesses work. Manufacturers also have industry-specific accounting software. If you’re ready to upgrade, check out whether there’s now a solution on the market that was developed for your industry’s accounting practices and standards.
Mind all the details
When upgrading, be sure to mind all the details. For instance, don’t overlook the importance of integration and mobile access.
Older accounting software may still function only as a standalone application, meaning data from across the company has to be manually entered into the system. This creates all sorts of risks. Optimally, you should be able to integrate your accounting software with other critical applications to share data seamlessly and securely, reducing errors and redundancy.
Also, if you haven’t already, add mobile access to your accounting system. Many solutions now include apps for smartphones or tablets.
Set your budget carefully
It’s easy to overspend on an accounting system upgrade. Those bells and whistles can be enticing. Then again, many frugal-minded business owners underspend — settling for a cheaper, less robust upgrade that may leave their employees dealing with headaches.
The ideal approach generally lies somewhere in the middle. Perform a thorough review of your accounting needs, transaction volume and required reports. Also factor in the proficiency of everyone who’ll use the software and the availability of tech support. Then set a reasonable budget for an upgrade that checks all the right boxes.
Ask for help
It’s easy to grow accustomed to a certain kind of business accounting software. The trouble is, over time, that software can slow down your operations and deprive you of helpful functions and insights.
If you’re unsure whether you’ve reached the point where an upgrade is imperative, we’re here to help. We can assess your current system and assist you in deciding whether now’s the time to act. If it is, we’ll partner with you and your leadership team to set a budget, choose the right solution and implement it properly.
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